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Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on The Travelers Companies, Inc. (NYSE:TRV) due to its excellent fundamentals in more than one area. TRV is a highly-regarded dividend payer that has been able to sustain great financial health over the past. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on Travelers Companies here.
Established dividend payer with adequate balance sheet
TRV’s debt-to-equity ratio stands at 31%, which means its debt level is reasonable. This implies that TRV has a healthy balance between taking advantage of low cost debt funding as well as sufficient financial flexibility without succumbing to the strict terms of debt. TRV’s has produced operating cash levels of 0.6x total debt over the past year, which implies that TRV’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
TRV is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
For Travelers Companies, there are three important aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for TRV’s future growth? Take a look at our free research report of analyst consensus for TRV’s outlook.
- Historical Performance: What has TRV’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TRV? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.